Brussels: The European Commission on Thursday fined Chinese online marketplace Temu pound 200 million ($232 million), saying it failed to adequately protect EU consumers from illegal and unsafe products sold on its platform. The Commission highlighted that Temu did not properly identify or assess risks faced by users in the bloc and underestimated how frequently consumers were likely to encounter illegal goods.

According to Anadolu Agency, mystery shopping tests carried out during the investigation found that many chargers sold on Temu failed basic safety standards, while a high percentage of baby toys contained excessive levels of hazardous chemicals or posed choking risks. EU regulators also pointed out that Temu failed to assess how its recommendation systems and influencer promotion programs could contribute to the spread of illegal products.

The penalty was issued under the European Union's Digital Services Act (DSA), which mandates major online platforms to assess and mitigate risks linked to illegal content and products. European Commission Executive Vice-President Henna Virkkunen emphasized the importance of risk assessments, stating they are not mere box-ticking exercises but the backbone of the DSA. She criticized Temu's risk assessment as underestimating concrete risks, lacking specificity, not grounded in solid evidence, and not comprehensive.

The Commission has given Temu until August 28 to submit a plan outlining how it will comply with the rules, warning that failure to do so could result in additional penalties. The investigation into Temu's practices began in October 2024.